A Business Manager Who Observes That Prices in General Keep

question 25

Multiple Choice

A business manager who observes that prices in general keep rising might infer,correctly,that now is a good time to ________.

• A)invest to expand the business
• B)raise the price of her product
• C)expect an increase in business profits
• D)expect a higher return on personal savings
• E)all of the above

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Definitions:

Expansionary Policy

is a macroeconomic policy that aims to increase economic growth or reduce unemployment by increasing government spending, decreasing taxes, or both.

Excess Reserves

The amount of reserves held by a bank that exceeds the minimum reserve requirements set by the central bank.

Ability

Ability refers to the capacity or power of an individual or entity to do something effectively, often implying a skill or competence in a specific domain.

Currency

A system of money in general use in a specific country or region.